Item #03
Date: January 3, 2023
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Amending Portions of Chapter 6.04 of the Marysville Municipal Code Entitled “Sewers and Sewage Disposal”
Recommendation:
Pass a Motion to 1) adopt the amended Ordinance No. 1444 for second reading, and 2) waive the second reading of the Ordinance amending portions of Chapter 6.04 of the Marysville Municipal Code.
Rationale for Recommendation:
Amending the City of Marysville’s Municipal Code, Chapter 6.04 will assist City Staff to assess a sewer customer late payment policy and fee. The Ordinance modifies the City’s Municipal Code such that the City Council shall establish by resolution the amount of delinquent service charge there forth mirroring the language used to establish monthly sewer charges.
Background:
Over the past few years, staff has increased its efforts to understand payment trends from the City’s sewer enterprise customers. Staff has utilized Dan Bergmann of IGS along with working closely with the City’s billing agent, Utility Management Services (UMS). In formulating a solution to improve payment from customers, the need came about to reevaluate the current penalty structure and its effectiveness.
Discussion & Analysis:
On February 15, 2022, the Council approved the reinstatement of sewer bill payment late fees and correcting the Marysville Fee Schedule to be consistent with the City of Marysville Municipal Code which stated that “10% of the monthly billing amount for each payment that is delinquent”. Late fees provide an incentive for property owners to pay sewer bills monthly directly to Marysville, rather than through assessment on property taxes. As this is an administrative effort, staff is recommending updated the Ordinance to allow the City Council to set the delinquent payment charge by Resolution there forth allowing for evaluation as seen needed.
Fiscal Analysis:
Staff projects revenue from late fees to be approximately $10,000 per year.
Attachment:
1) Ordinance No. 1444